1 Part 1: An Introduction: Organizational Behaviour and Management ...
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Part 1: An Introduction: Organizational Behaviour and Management Sodexo Canada - leading provider of food services and facilities management - offers integrated facilities management services i.e. building maintenance, construction, landscaping, security, concierge services, housekeeping, fitness centre management - Better Tomorrow Plan: global initiative that was developed at the company’s headquarters - global and local issues that touch every part of the organization - three main pillars : actively promote nutrition, health, and wellness;; support development of communities;; protect the environment - plan: company wide commitments to reduce its carbon footprint, water consumption, waste diversion and composting - online toolkit to communicate to and engage employees - Green Team: educate and engage employees + inspire them to adapt practises and reduce waste - quarterly newsletters - Chris Roberts: Director of Corporate Citizenship - decentralized employment population is tough - used cross functional teams to help with initiatives - company works with World Wildlife Fund - national sustainable seafood policy - supports ongoing employee education - tuition subsidies, training programs etc. What are organizations? Organizations: Social inventions for accomplishing common goals through group effort -i.e. Sodexo, CTV, Toronto Blue Jays Social Inventions - that their essential characteristic is the coordinated presence of people. not things - people who present both opportunities and challenges -the field of organizational behaviour: understanding people and managing them to work effectively Goal Accomplishment - non-profit organizations: soul saving, promoting arts, education etc. - every organization has survival as a goal - field of organizational behaviour is concerned with how organizations can survive and adapt to change - Behaviours that are necessary for survival and adaptation: - be motivated to join and remain within the organization - carry out their basic work reliably, in terms of productively, quality, and service - be willing to continuously learn and upgrade their knowledge and skills - be flexible and innovative (especially important for contemporary organizations since they provide adaption to change) Group Effort
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- interaction and organization among people to accomplish orgs. goals - much of intellectual and physical work done in organizations is literally provided by groups - informal grouping: friends and alliances develop to finish work - informal contact: can have strong impact on goal achievement - field of organizational behaviour is concerned with how to get people to practise effective teamwork What is organizational Behaviour? Organizational Behaviour: attitudes and behaviours of individuals and groups in organizations - systematically studies these attitudes and behaviours and provides insight about effectively managing/changing them - studies how organization can be structured more effectively - studies how events in their external environment affect organizations - those who study OB: - interested in attitudes: how satisfied people are, committed they feel, supportive they are towards promoting women/minorities into management positions Human Resource Management : refers to programs, practises,and systems to acquire, develop and retain employees in organizations - recruitment and selection, compensation, training and development - knowledge of OB helps understand effectiveness of HRM - role of perception, employee absenteeism and turnover (necessary for developing effective HR practices) - theories of motivation: understand employee motivation and performance - HR practises ;; contribute to socialization process in organization Why Study OB? It’s Interesting - about human nature and people - includes interesting example sofa success and failure It’s Important - impact of OB is important - does not stop at the walls of any organization - consumers are also affected - tremendous variation in OB It Makes a Difference - organizations can no longer achieve a competitive advantage through the traditional sources of success i.e. technology, regulated markets, financial resources etc. - main factor that differentiates organizations is their workforce and human capital - human capital is strongly related and a key determinant of firm performance - sustained competitive advantage therefore, and organizational effectiveness are related to the management of human capital and OB - Pfeffer: 16 practices i.e. incentive pay, participation and empowerment, teams, job redesign, training and skill development How much do you know about Organizational Behaviour?
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- research: each of the statements is actually false (pg 8 of textbook) - researchers have found that the personalities of effective leaders vary a fair amount, many superiors, workers underestimate their own absenteeism and pay is not always the most effective way to motivate workers and improve job performance - experience indicates that people are good at giving sensible reasons why the same statement is either true or false - thus, pay will always motivate workers because most people want to make more money and will work harder to get more pay - Research Focus: Are the best Companies to work for the best companies? - additional costs associated with being a great place to work justified by higher firm performance? - Ingrid, fulmer Barry Gerhart, Kimberly Scott: Study - compared 50 Fortune 100 best list --> comparable in terms of industry size and operating performance - comparisons indicated 100 best companies outperformed the matched groups of companies on financial performance and stock returns - Financial performance: measures by return on assets (ROA)and market to book value of equity was generally better among 100 best than matched group - cumulative stock returns of the companies the 100 best list outperformed a composite market index by 183 percentage points, or 95% - companies in the 100 best list has more positive employee relations and attitudes compared to the other companies - to assess stability of employee attitude - 2 years: the relationship was positive and significant and there was little change from one year to next - employee attitudes were highly positive at best 100 and stable --> provided support for the belief that positive employee relations are a source of sustainable competitive advantage - therefore, direct positive link between employee relations and attitudes and financial performance - companies can create attractive workplaces without hurting bottom line Goals of OB - predicting, explaining and managing behaviour Predicting OB - anticipate when people will get angry - interest in predicting when people will make ethical decisions, create innovative products or engage in sexual harassment - the regularity of it, permits the predictions of its future occurrence - untutored predictions of OB are not always accurate - field of OBB provides scientific foundation that helps improve predictions of organizational events
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- being able to predict OB does not guarantee that we can explain the reason for the behaviour and develop an effective strategy to manage it Explaining OB - prediction and explanation are not synonymous - accurate predictions precedes explanations - determining why people are more or less motivated, satisfied, or prone to resign - explaining events is more complicated than predicting - case can have multiple causes - underlying causes of some event/behaviour can change over time Managing OB - Management: the art of getting things accomplished through others - acquire, allocate and utilize physical and HR to accomplish goals - prediction and explanation = analysis, management= action - we see cases where managers act without analysis: i.e. quick fix result= disaster - do not overanalyze: rather approach the problem with a systematic understanding of behavioural science and OB +use that understanding to make decisions: evidence-based management - evidence-based management: involves translating principles based on the best scientific evidence into organizational practices - managers can make decisions based on best available scientific evidence from social science and organizational research - voids personal preference and unsystematic experience - derives principles from research evidence and makes practises that solve problems - more likely to result in attainment of Organizational goals, also those affecting employees, stockholders, and public in gener;; Early Prescriptions Concerning Management - ongoing concern: prescribing the ‘correct’ way to manage an organization to reach its goals - history of management thought and Ob has developed The Classical view and Bureaucracy - early 1900s - military settings, mining operations, factories that produces everything - Henri Fayol - James D. Mooney: GM executive - Lyndall Urwick: consultant - Classical viewpoint: tended to advocate a very high degree of specialization of labour and a very high degree of coordination - each department: tend to own affairs, centralized decision making from upper management - suggests that managers have fairly few workers except for low level jobs where machine pacing will substitute for close supervision - Fredrick Taylor : father of scientific management : system for using research to determine the optimum degree of specialization and standardization of work tasks
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- mainly concerned with job design and structure of work on the shop floor - supported development of written instructions--> clearly defining work procedures, encouraged supervisors to standardize workers movements and breaks for maximum efficiency - extended scientific management to the supervisor;;s job: functional foremanship )where supervisors would specialize in particular functions) - Max Weber - German social theorist - made the term bureaucracy: ideal type of organization (Weber) that included a strict chain of command, detailed rules, high specialization, centralized power, and selection and promotion based on technical competence - advocating it as a means of rationally managing complex organizations - time of industrial growth;; most management was done by intuition, nepotism and favouritism were rampant - following qualities of bureaucracy (Weber) - strict chain of command in which each member reports to only a single supervisor - criteria for selection and promotion based on impersonal technical skills rather than nepotism favouritism - a set of detailed rules, regulations and procedures ensuring that the job gets done regardless of who the specific worker is - the use of strict specialization to match duties with technical competence - the centralization of power at the top of the organization - weber saw it as an ideal type, or theoretical model --> would standardize behaviour and provide workers with security+ sense of purpose - jobs would be performanced as intended, not whims of specific role occupant - workers would have a fair chance at promotion and rising in the power structure - provide security to workers: rules, clear cut command chain etc. - Mary Parker: classical view of management seemed to take for granted essential conflict of interest between managers and employees The Human Relations Movement and a Critique of Bureaucracy - began with famous Hawthorne studies : research conducted at the Hawthorne plant of Western Electric near Chicago in the 1920s that illustrated how psychological and social processes affect productivity and work adjustment - 1920s and 30s - began in the strict tradition of industrial engineering - concerned with impact of fatigue, rest pauses, lighting on productivity - researchers began to notice the effect of psychological and social processes on productivity and work adjustment --> could be dysfunctional aspects to how work was organized - one sign: resistance to management through strong informal group mechanisms, i.e. norms that limited productivity to less that management wanted - after WWII - human relations movement: critique of classical management and bureaucracy that
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advocated management styles that were more participative and oriented toward employee needs - called attention to dysfunctional aspects of classical management - advocated people-orientated style of management catering to social and psychological needs of employees - critique addressed several specific problems: - strict specialization is incompatible with human needs for growth and achievement. This can lead to employee alienation from the organization and its clients - strong centralization and reliance on formal authority often fail to take advantage of the creative ideas and knowledge of lower-level members, who are often closer to the customer - as a result;; the org. will fail to learn from mistakes, threatening innovation and adaption - strict, impersonal rules lead members to adopt the minimum a higher performance levels are possible - strong specialization causes employees to lose sight of the overall goals of the org. Forms procedures, required signatures become ends in themselves. divorced rom needs of customers, clients, and departments in org. --> called the red-tape mentality - not all orbs. have these problems--> common Contemporary Management : The contingency approach How the apparent tension between the classical approach and human relations approach has been resolved: - classical advocates: critical role of control and coordination in getting goals accomplished - human relationists: dangers of forms of control and coordination (plus addressed needs for flexibility and adaptability) - contemporary scholars: management approached need to be tailored to fit the situation - i.e. manage a payroll department more bureaucratically than research and development department --> payroll once a week is no margin for error - research requires creativity that is fostered by a more flexible work environment - OB cannot be a cookbook - there is a growing body of research and management experience to help sort out complexities of what happens - everything relies on : it depends : dependencies are called contingencies - contingency approach: approach to management that recognized that there is no one best way to manage, and that an appropriate management style depends on the demands of the situation - the effectiveness of a leadership style is contingent on the abilities of the followers, i.e. consequence of a pay increase is contingent on need for money - contingencies : illustrate complexities of OB and why we need to study it systematically What do managers do? - strong impact on what happens in and to orgs. - influence and are influenced by OB --> net result can have a huge effect for organizational effectiveness Managerial roles - Henry Mintzberg
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- canadian management theorist - conducted study of behaviour of several managers - complex set of roles played by the managers: figurehead, leader, liaison person, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, negotiator - Informational Roles: Monitor, disseminator, spokesperson - interpersonal roles: figurehead, leader, liaison - decisional roles: entrepreneur, disturbance handler, resource all Interpersonal Roles: - expected behaviours that have to do with establishing and maintaining interpersonal relations - figurehead role: managers service symbols of their organization rather than active decision makers - i.e. making a speech to a trade group, entertaining clients, signing documents. - Liaison role: managers maintain horizontal contacts inside and outside the organization - i.e. discussing project with colleague in another department, delegate in another country - Monitor role: managers scan internal/external environments of the firm to follow performance and keep themselves informed - attend professional engineering conference (head) - disseminator role: managers send out information on both facts and preferences to others - i.e. R&D summarized what he/she learnt at conferences - spokesperson role: mainly sending message into organization’s external environment i.e. drafting annual report to stockholders Decisional Roles - entrepreneur role;; managers turn problems and opps. into plans for improved changes i.e. suggesting new product or service that will please customers - disturbance handler: managers deal with problems - resource allocator: decide how to deploy time, money, personnel, other critical resources - negotiator role: conduct major negotiations with other orgs. or individuals - relative importance of roles vary with management level and organizational technology - first level supervisors do more disturbance handling and less figure heading - Mintzberg main contribution to OB: highlight complexity of roles managers are required to play and variety of skills they must have to be effective , i.e.leadership, communication and negotiation - also illustrates the complex balancing pact managers fav when they must play different roles for different audiences Managerial Activities - Fred Luthans, Richard Hodgetts, Stuart Rosenkrantz --> study - behaviour of a large number of managers in a variety of different kinds of orgs. - managers will engage in four types of activities: 1. Routine communication: includes formal sending receiving of information (i.e. meetings) and handling of paperwork 2. traditional management: planning, decision making, controlling are primary 3. networking: interacting with people outside the org. and informal socializing and
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politicking with insiders 4. Human resource management: includes motivating and reinforcing, disciplining and punishing, managing conflict, staffing, training + development - sample of 248 managers --> page 17 results - fascinating finding: ho emphasis on these various activities correlated with managerial success - if we define cusses as moving up the rank of an org. quickly, networking was critical (less to HRM) - success in terms of unit effectiveness and employee satisfaction and commitment: more successful managers were those who devoted more time to effort and HRM (less to networking) Managerial Agendas - John Kotter: behaviour patterns of number of general managers - found differences but also a lot of similarities - categories: agenda setting, networking, agenda implementation Agenda Setting - managers all gradually developed agendas of their accomplishment for orgs. - almost always informal and unwritten, they were much more concerned with people issues and less numerical than most formal strategic plans - based agendas wide-ranging informal discussions with wide variety of people Networking - wide formal and informal network of key people - insiders: peers, employees, bosses, people’s employees, bosses - outsiders: customers, suppliers, competitors. government officials, press - provided information and established cooperative relationships relevant to their agendas - formal hiring, reassigning shaped the network - formal liaisons in which managers created dependencies by doing favours for others (also shaped network) Agenda implementation - used networks to implement - would go anywhere for help - employed wide range of influence tactics, from direct orders to subtle language and stories that conveyed their message indirectly - findings - high degree of informal interaction/ concern with people issues that were necessary for the managers to achieve their agendas - managers used formal org. power, but often found themselves dependent on people who wielded no power Managerial Minds - Herbert Simon and Daniel Isenberg - explored how managers think - managerial intuition (focus) - intuition has guided many actions, and they use intuition in these several ways:
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- to sense that a problem exists - to perform well learned mental tasks rapidly (i.e. sizing up written contracts) - to synthesize isolated pieces of information and date - to double check more formal or mechanical analyses (do these projections look correct?) - dispute the idea that intuition is the opposite of rationality or that it means unanalytical - good intuition: problem solving or problem identification based on long history of systematic and extensive education/experience that enables a manager to locate problems within network of previously acquired information International Managers - basic behaviours and thought processes;; international managers would act the same generally - cross cultural variations in values that affect interpersonal interactions Geert Hofstede - managers are cultural heroes and a distinct social class in NA - Germany;; worships engineers and have fewer managerial types - Japan: managers pay obsessive attention to group solidarity rather than to star employees - Netherlands :exhibit modesty and strive for congress - Taiwan/Singapore: family run businesses professional management (such as NA) is downplayed - technically requirements for achieving success is the same but the behavioural requirements are different - national culture is one of the most important contingency variables in OB - What depends on where one is in the world? - appropriateness of various leadership styles - motivational techniques - communication methods Some Contemporary Management Concerns - four issues with which organizations and managers are currently concerns Diversity (Local and Global) - demographics of NA changing - workforce and customers becoming diverse - contributions: increased immigration and women into paid employment - visible minorities: fastest growing segment of the population - 2/3 of todays new entrants into labour force: women, visible minorities, aboriginals and persons with disabilities - Statistics Canada: number of visible minorities s to double by 2017 - will form more than half the population in greater Toronto and Vancouver - immigrants will account for 22 % of population - diversity of age - workforce will be dominated with people over 40 in the next 10 years or less - 2015 projectos: 48% of canada's working age population will be between ages 45-64 (this was 29% in 1991)
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- growing # of 65+ year olds will be in workforce because a) elimination of mandatory retirement age of 65 b) recent global recession where people’s life savings diminished - 75% expected to work past 65 - factors included in the much more intergenerational contact in workplace: a) re entry of retired people into the workforce b_ trend to remove vertical layers in the organization - new programs in response to demographic shift: - flexible benefit plan - compressed work days - part time jobs - attract/ retain older workers - Orkin/PCO Services Corp. -->pest control service --> dealt with shortage of pest control specialists--> introduced more flexible part time schedule with benefits to attract employees back or to stay - diversity issues have increasing impact as organizations go global - foreign sales by MNCs exceed 7 trillion and growing 20/30% faster than sales of exports - multinational expansion, strategic alliances, joint ventures --> require employees and managers to come to contact with counterparts from other cultures - diversity and OB - stereotypes, conflict, cooperation and teamwork - managers must manage these effectively for orgs. to benefit from the considerable opportunities that diverse workforce offers A Positive Work Environment and Employee Well Being - deterioration of well being: concern over job security, job demands, work related stress - employees who are disengaged, disillusioned, suffering from physical and mental sickness - absenteeism +employee turnover on the rise in Cda - Statistics Canada: increase if found across all age groups and sectors, translates into millions of dollars in lost productivity - total cost reported absenteeism is 15 billion annually - major contributors: poorly designed jobs + increasing stress levels - work related illness on the rise - more workplace stress than a decade ago - Canadian employees study ;; direct cost of absenteeism is high work life conflict: 3-5 billion dollars annually - costs Canadians approx. 6-10 billion per year (when both direct and indirect costs included) - employees searching for meaning and purposes in their work lives have focused on employee physical and mental health by creating positive work environments - OB concerned with creating positive work environments that contribute to employee health/wellness - spiritual workplace and workplace spirituality: workplace that provides employees with
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meaning purpose a sense of community and a connection to others - is not about religion, but provides employees with meaningful work life aligned with their values - employees have interesting work which provides them meaning and feeling of purpose, a sense they belong to the org. and a sense of connection to their work +others - have opportunities for personal growth and development - feel valued/supported e.g. Telus: provides quiet rooms for meditation, praying, decompassing etc. - they offer seminars - nutrition, parenting, work life balance etc. - spirituality initiatives : create positive work environment, promotes health and wellness + reduced absenteeism - OB : concerned with developing employees and providing them with resources they need to achieve goals - psychological capital: an individual’s positive psychological state of development that is characterized by;; (components of PsyCap) - self efficacy (one's confidence to take on and put on the necessary effort to succeed at challenging tasks) , - optimism (making internal attributions about positive events in present and future +external attributions about negative events) , - hope (persevering towards one's goals and when necessary making changes and using multiple pathways to achieve ones goals), - resilience (ones ability to bounce back or rebound from adversity and setbacks to attain success) - these components are considered to be states or positive work related psychological resources --> they can be changed modified and developed - they are not fixed stable or static personality traits - research on Psycap: positively related to employee psychological well being and positive job attitudes, behaviours, performance - negatively related to undesirable things i.e stress anxiety, turnover intentions - Psycap interventions (PCI) focus on enhancing each of the components of psycap - one way for orgs. to improve employee health and well being is to develop their Psycap Talent Management and Employee Engagement - orgs. becoming increasingly concerned with talent and employee engagement - talent ranks second most critical challenge behind business growth - Talent Management an orgs. processes for attracting, developing, retaining, and utilizing people with the required skills to meet current and future business needs - ability of org. to attract/retain --> now especially critical --> firms struggling to compete and survive - orgs. struggling to find qualified individuals - changing demographics: dramatic shortage of skilled workers over next 10 year s - baby boomers will begin to retire in next few years = creating large skill gap - 30% shortfall of workers between ages 25-44 - increasing willingness of knowledge workers to relocate anywhere in the world and fewer Cdns
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entering skills trades= canadians will face increasingly severe shortages of labour - currently: shortages in scientific, technical,high tech industries and senior management communications marketing positions - more than 60 % of Cdn employers say that labour shortages are limiting productivity/efficiency - top CEOs of Cda --> believe retaining employees has become their #1 priority +attracting new employees is 4th priority, behind financial performance and profitability - 3/4 of employers say they cannot find competent employees - orgs. become increasingly concerned about employee engagement - work management: a positive work related state of mind that is characterized by vigour, dedication and absorption - only 1/3 of workers are engaged and engaged workers have more positive work attitudes + higher job performance - employee engagement= key for success and competitiveness , has significant impact on productivity, customer satisfaction, profitability, innovation and quality - sample of 65 firms (different industries), top 25% on engagement index had greater return on assets (ROA), greater profitability, more than double shareholder value (compared to bottom 25%) - OB and talent management + employee engagement - OB provides means for orgs to be designed/managed in way to optimize attraction development, retention engagement and performance of talent - i.e. providing opportunities for learning and designing challenging, meaningful, rewarding jobs - i.e. providing recognition and monetary rewards for performance - managing diverse workforce, offering flexible work arrangements, providing effective leadership Corporate Social Responsibility (CSR) - CSR- an org. taking responsibility for the impact of its decisions and actions on its stakeholders - orgs. overall impact on society at large and extends beyond interests of shareholders - more so interests of employees and community in which it operates - CSR - involves variety of issues - i.e. community involvement, environmental protection, safe products, ethical marketing, employee diversity, local/global labour practices - has to do with how an org. performs its core functions or producing goods and providing services and that is does so in a socially responsible way - Social responsibility and OB - has to do with treatment of employees, management practices ie. managing diversity, work family balance, employee equity - orgs. rank high on CSR: good employers because of the way they treat their employees and management practices promoting employee well being - CSr also involves - environmental, social and governance issues (ESG) - orgs. social and environmental actions are increasingly scrutinized L shareholders and consumers are holding firms to higher CSR standards on environment, employment, social issues - governance issues i.e. executive compensation receive greater attention
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- 2009 Macleans inaugural list of 50 Most Socially responsible Corporations --> those that raises standards of good corporate citizens - these rankings have led to increasing number of orgs. placing greater emphasis on CSR initiatives - Sodexo canada: made Sodexo Foundation: donates meals to at-risk youths - Cameo Corp: world’s largest producers of uranium, community investment program that focuses on improving the quality of life for people in communities it operates - Unilever Canada: community virility fund and donates 1% of pre tax profits to initiatives in childrens health and water resources (both linked to its products) - concern for environment and green initiatives - Sodexo Canada: one of canada's greenest corps. - green programs require change in employees attitudes and behaviours - i.e. Fairmont Hotels and Resorts : employees volunteer to be on green teams that meet month to brainstorm environmental initiatives - program= positive effect on employee engagement and motivation - employees are proud to be working for environmentally friendly org. - Hudson bays company: published CSr report every year - Husky Injection Molding System: environmental responsibility programs Applied Focus: Green Management at the Delta Chelsea Hotel - 2008: Turtle Island Recycling tour - helped get employees engaged in green initiatives by providing big picture of what happens to waste from hotel and impact on environment - 08: 76% of waste from hotel, recycled, and 09: figure risen to 81% - employee orientation includes a presentation on hotels green initiatives and policies - an internal newsletter dedicated a page to environment, posters o elevators, message boards etc. - also set goals to be carbon neutral --> LivClean EcoStay Program: guests can voluntarily pay $1 per stay to support emission-reduction projects The Manager’s Notebook: Toronto’s Troubled Transit System (pg. 25 read over section)
Part 1: An Introduction: Organizational Behaviour and Management Sodexo Canada - leading provider of food services and facilities management - offers integrated facilities management services i.e. building maintenance, construction, landscaping, security, concierge services, housekeeping, fitness centre management - Better Tomorrow Plan: global initiative that was developed at the company’s headquarters - global and local issues that touch every part of the organization - three main pillars : actively promote nutrition, health, and wellness;; support development of communities;; protect the environment - plan: company wide commitments to reduce its carbon footprint, water consumption, waste diversion and composting - online toolkit to communicate to and engage employees - Green Team: educate and engage employees + inspire them to adapt practises and reduce waste - quarterly newsletters - Chris Roberts: Director of Corporate Citizenship - decentralized employment population is tough - used cross functional teams to help with initiatives - company works with World Wildlife Fund - national sustainable seafood policy - supports ongoing employee education - tuition subsidies, training programs etc. What are organizations? Organizations: Social inventions for accomplishing common goals through group effort -i.e. Sodexo, CTV, Toronto Blue Jays Social Inventions - that their essential characteristic is the coordinated presence of people. not things - people who present both opportunities and challenges -the field of organizational behaviour: understanding people and managing them to work effectively Goal Accomplishment - non-profit organizations: soul saving, promoting arts, education etc. - every organization has survival as a goal - field of organizational behaviour is concerned with how organizations can survive and adapt to change - Behaviours that are necessary for survival and adaptation: - be motivated to join and remain within the organization - carry out their basic work reliably, in terms of productively, quality, and service - be willing to continuously learn and upgrade their knowledge and skills - be flexible and innovative (especially important for contemporary organizations since they provide adaption to change) Group Effort
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- interaction and organization among people to accomplish orgs. goals - much of intellectual and physical work done in organizations is literally provided by groups - informal grouping: friends and alliances develop to finish work - informal contact: can have strong impact on goal achievement - field of organizational behaviour is concerned with how to get people to practise effective teamwork What is organizational Behaviour? Organizational Behaviour: attitudes and behaviours of individuals and groups in organizations - systematically studies these attitudes and behaviours and provides insight about effectively managing/changing them - studies how organization can be structured more effectively - studies how events in their external environment affect organizations - those who study OB: - interested in attitudes: how satisfied people are, committed they feel, supportive they are towards promoting women/minorities into management positions Human Resource Management : refers to programs, practises,and systems to acquire, develop and retain employees in organizations - recruitment and selection, compensation, training and development - knowledge of OB helps understand effectiveness of HRM - role of perception, employee absenteeism and turnover (necessary for developing effective HR practices) - theories of motivation: understand employee motivation and performance - HR practises ;; contribute to socialization process in organization Why Study OB? It’s Interesting - about human nature and people - includes interesting example sofa success and failure It’s Important - impact of OB is important - does not stop at the walls of any organization - consumers are also affected - tremendous variation in OB It Makes a Difference - organizations can no longer achieve a competitive advantage through the traditional sources of success i.e. technology, regulated markets, financial resources etc. - main factor that differentiates organizations is their workforce and human capital - human capital is strongly related and a key determinant of firm performance - sustained competitive advantage therefore, and organizational effectiveness are related to the management of human capital and OB - Pfeffer: 16 practices i.e. incentive pay, participation and empowerment, teams, job redesign, training and skill development How much do you know about Organizational Behaviour?
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- research: each of the statements is actually false (pg 8 of textbook) - researchers have found that the personalities of effective leaders vary a fair amount, many superiors, workers underestimate their own absenteeism and pay is not always the most effective way to motivate workers and improve job performance - experience indicates that people are good at giving sensible reasons why the same statement is either true or false - thus, pay will always motivate workers because most people want to make more money and will work harder to get more pay - Research Focus: Are the best Companies to work for the best companies? - additional costs associated with being a great place to work justified by higher firm performance? - Ingrid, fulmer Barry Gerhart, Kimberly Scott: Study - compared 50 Fortune 100 best list --> comparable in terms of industry size and operating performance - comparisons indicated 100 best companies outperformed the matched groups of companies on financial performance and stock returns - Financial performance: measures by return on assets (ROA)and market to book value of equity was generally better among 100 best than matched group - cumulative stock returns of the companies the 100 best list outperformed a composite market index by 183 percentage points, or 95% - companies in the 100 best list has more positive employee relations and attitudes compared to the other companies - to assess stability of employee attitude - 2 years: the relationship was positive and significant and there was little change from one year to next - employee attitudes were highly positive at best 100 and stable --> provided support for the belief that positive employee relations are a source of sustainable competitive advantage - therefore, direct positive link between employee relations and attitudes and financial performance - companies can create attractive workplaces without hurting bottom line Goals of OB - predicting, explaining and managing behaviour Predicting OB - anticipate when people will get angry - interest in predicting when people will make ethical decisions, create innovative products or engage in sexual harassment - the regularity of it, permits the predictions of its future occurrence - untutored predictions of OB are not always accurate - field of OBB provides scientific foundation that helps improve predictions of organizational events
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- being able to predict OB does not guarantee that we can explain the reason for the behaviour and develop an effective strategy to manage it Explaining OB - prediction and explanation are not synonymous - accurate predictions precedes explanations - determining why people are more or less motivated, satisfied, or prone to resign - explaining events is more complicated than predicting - case can have multiple causes - underlying causes of some event/behaviour can change over time Managing OB - Management: the art of getting things accomplished through others - acquire, allocate and utilize physical and HR to accomplish goals - prediction and explanation = analysis, management= action - we see cases where managers act without analysis: i.e. quick fix result= disaster - do not overanalyze: rather approach the problem with a systematic understanding of behavioural science and OB +use that understanding to make decisions: evidence-based management - evidence-based management: involves translating principles based on the best scientific evidence into organizational practices - managers can make decisions based on best available scientific evidence from social science and organizational research - voids personal preference and unsystematic experience - derives principles from research evidence and makes practises that solve problems - more likely to result in attainment of Organizational goals, also those affecting employees, stockholders, and public in gener;; Early Prescriptions Concerning Management - ongoing concern: prescribing the ‘correct’ way to manage an organization to reach its goals - history of management thought and Ob has developed The Classical view and Bureaucracy - early 1900s - military settings, mining operations, factories that produces everything - Henri Fayol - James D. Mooney: GM executive - Lyndall Urwick: consultant - Classical viewpoint: tended to advocate a very high degree of specialization of labour and a very high degree of coordination - each department: tend to own affairs, centralized decision making from upper management - suggests that managers have fairly few workers except for low level jobs where machine pacing will substitute for close supervision - Fredrick Taylor : father of scientific management : system for using research to determine the optimum degree of specialization and standardization of work tasks
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- mainly concerned with job design and structure of work on the shop floor - supported development of written instructions--> clearly defining work procedures, encouraged supervisors to standardize workers movements and breaks for maximum efficiency - extended scientific management to the supervisor;;s job: functional foremanship )where supervisors would specialize in particular functions) - Max Weber - German social theorist - made the term bureaucracy: ideal type of organization (Weber) that included a strict chain of command, detailed rules, high specialization, centralized power, and selection and promotion based on technical competence - advocating it as a means of rationally managing complex organizations - time of industrial growth;; most management was done by intuition, nepotism and favouritism were rampant - following qualities of bureaucracy (Weber) - strict chain of command in which each member reports to only a single supervisor - criteria for selection and promotion based on impersonal technical skills rather than nepotism favouritism - a set of detailed rules, regulations and procedures ensuring that the job gets done regardless of who the specific worker is - the use of strict specialization to match duties with technical competence - the centralization of power at the top of the organization - weber saw it as an ideal type, or theoretical model --> would standardize behaviour and provide workers with security+ sense of purpose - jobs would be performanced as intended, not whims of specific role occupant - workers would have a fair chance at promotion and rising in the power structure - provide security to workers: rules, clear cut command chain etc. - Mary Parker: classical view of management seemed to take for granted essential conflict of interest between managers and employees The Human Relations Movement and a Critique of Bureaucracy - began with famous Hawthorne studies : research conducted at the Hawthorne plant of Western Electric near Chicago in the 1920s that illustrated how psychological and social processes affect productivity and work adjustment - 1920s and 30s - began in the strict tradition of industrial engineering - concerned with impact of fatigue, rest pauses, lighting on productivity - researchers began to notice the effect of psychological and social processes on productivity and work adjustment --> could be dysfunctional aspects to how work was organized - one sign: resistance to management through strong informal group mechanisms, i.e. norms that limited productivity to less that management wanted - after WWII - human relations movement: critique of classical management and bureaucracy that
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advocated management styles that were more participative and oriented toward employee needs - called attention to dysfunctional aspects of classical management - advocated people-orientated style of management catering to social and psychological needs of employees - critique addressed several specific problems: - strict specialization is incompatible with human needs for growth and achievement. This can lead to employee alienation from the organization and its clients - strong centralization and reliance on formal authority often fail to take advantage of the creative ideas and knowledge of lower-level members, who are often closer to the customer - as a result;; the org. will fail to learn from mistakes, threatening innovation and adaption - strict, impersonal rules lead members to adopt the minimum a higher performance levels are possible - strong specialization causes employees to lose sight of the overall goals of the org. Forms procedures, required signatures become ends in themselves. divorced rom needs of customers, clients, and departments in org. --> called the red-tape mentality - not all orbs. have these problems--> common Contemporary Management : The contingency approach How the apparent tension between the classical approach and human relations approach has been resolved: - classical advocates: critical role of control and coordination in getting goals accomplished - human relationists: dangers of forms of control and coordination (plus addressed needs for flexibility and adaptability) - contemporary scholars: management approached need to be tailored to fit the situation - i.e. manage a payroll department more bureaucratically than research and development department --> payroll once a week is no margin for error - research requires creativity that is fostered by a more flexible work environment - OB cannot be a cookbook - there is a growing body of research and management experience to help sort out complexities of what happens - everything relies on : it depends : dependencies are called contingencies - contingency approach: approach to management that recognized that there is no one best way to manage, and that an appropriate management style depends on the demands of the situation - the effectiveness of a leadership style is contingent on the abilities of the followers, i.e. consequence of a pay increase is contingent on need for money - contingencies : illustrate complexities of OB and why we need to study it systematically What do managers do? - strong impact on what happens in and to orgs. - influence and are influenced by OB --> net result can have a huge effect for organizational effectiveness Managerial roles - Henry Mintzberg
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- canadian management theorist - conducted study of behaviour of several managers - complex set of roles played by the managers: figurehead, leader, liaison person, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, negotiator - Informational Roles: Monitor, disseminator, spokesperson - interpersonal roles: figurehead, leader, liaison - decisional roles: entrepreneur, disturbance handler, resource all Interpersonal Roles: - expected behaviours that have to do with establishing and maintaining interpersonal relations - figurehead role: managers service symbols of their organization rather than active decision makers - i.e. making a speech to a trade group, entertaining clients, signing documents. - Liaison role: managers maintain horizontal contacts inside and outside the organization - i.e. discussing project with colleague in another department, delegate in another country - Monitor role: managers scan internal/external environments of the firm to follow performance and keep themselves informed - attend professional engineering conference (head) - disseminator role: managers send out information on both facts and preferences to others - i.e. R&D summarized what he/she learnt at conferences - spokesperson role: mainly sending message into organization’s external environment i.e. drafting annual report to stockholders Decisional Roles - entrepreneur role;; managers turn problems and opps. into plans for improved changes i.e. suggesting new product or service that will please customers - disturbance handler: managers deal with problems - resource allocator: decide how to deploy time, money, personnel, other critical resources - negotiator role: conduct major negotiations with other orgs. or individuals - relative importance of roles vary with management level and organizational technology - first level supervisors do more disturbance handling and less figure heading - Mintzberg main contribution to OB: highlight complexity of roles managers are required to play and variety of skills they must have to be effective , i.e.leadership, communication and negotiation - also illustrates the complex balancing pact managers fav when they must play different roles for different audiences Managerial Activities - Fred Luthans, Richard Hodgetts, Stuart Rosenkrantz --> study - behaviour of a large number of managers in a variety of different kinds of orgs. - managers will engage in four types of activities: 1. Routine communication: includes formal sending receiving of information (i.e. meetings) and handling of paperwork 2. traditional management: planning, decision making, controlling are primary 3. networking: interacting with people outside the org. and informal socializing and
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politicking with insiders 4. Human resource management: includes motivating and reinforcing, disciplining and punishing, managing conflict, staffing, training + development - sample of 248 managers --> page 17 results - fascinating finding: ho emphasis on these various activities correlated with managerial success - if we define cusses as moving up the rank of an org. quickly, networking was critical (less to HRM) - success in terms of unit effectiveness and employee satisfaction and commitment: more successful managers were those who devoted more time to effort and HRM (less to networking) Managerial Agendas - John Kotter: behaviour patterns of number of general managers - found differences but also a lot of similarities - categories: agenda setting, networking, agenda implementation Agenda Setting - managers all gradually developed agendas of their accomplishment for orgs. - almost always informal and unwritten, they were much more concerned with people issues and less numerical than most formal strategic plans - based agendas wide-ranging informal discussions with wide variety of people Networking - wide formal and informal network of key people - insiders: peers, employees, bosses, people’s employees, bosses - outsiders: customers, suppliers, competitors. government officials, press - provided information and established cooperative relationships relevant to their agendas - formal hiring, reassigning shaped the network - formal liaisons in which managers created dependencies by doing favours for others (also shaped network) Agenda implementation - used networks to implement - would go anywhere for help - employed wide range of influence tactics, from direct orders to subtle language and stories that conveyed their message indirectly - findings - high degree of informal interaction/ concern with people issues that were necessary for the managers to achieve their agendas - managers used formal org. power, but often found themselves dependent on people who wielded no power Managerial Minds - Herbert Simon and Daniel Isenberg - explored how managers think - managerial intuition (focus) - intuition has guided many actions, and they use intuition in these several ways:
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- to sense that a problem exists - to perform well learned mental tasks rapidly (i.e. sizing up written contracts) - to synthesize isolated pieces of information and date - to double check more formal or mechanical analyses (do these projections look correct?) - dispute the idea that intuition is the opposite of rationality or that it means unanalytical - good intuition: problem solving or problem identification based on long history of systematic and extensive education/experience that enables a manager to locate problems within network of previously acquired information International Managers - basic behaviours and thought processes;; international managers would act the same generally - cross cultural variations in values that affect interpersonal interactions Geert Hofstede - managers are cultural heroes and a distinct social class in NA - Germany;; worships engineers and have fewer managerial types - Japan: managers pay obsessive attention to group solidarity rather than to star employees - Netherlands :exhibit modesty and strive for congress - Taiwan/Singapore: family run businesses professional management (such as NA) is downplayed - technically requirements for achieving success is the same but the behavioural requirements are different - national culture is one of the most important contingency variables in OB - What depends on where one is in the world? - appropriateness of various leadership styles - motivational techniques - communication methods Some Contemporary Management Concerns - four issues with which organizations and managers are currently concerns Diversity (Local and Global) - demographics of NA changing - workforce and customers becoming diverse - contributions: increased immigration and women into paid employment - visible minorities: fastest growing segment of the population - 2/3 of todays new entrants into labour force: women, visible minorities, aboriginals and persons with disabilities - Statistics Canada: number of visible minorities s to double by 2017 - will form more than half the population in greater Toronto and Vancouver - immigrants will account for 22 % of population - diversity of age - workforce will be dominated with people over 40 in the next 10 years or less - 2015 projectos: 48% of canada's working age population will be between ages 45-64 (this was 29% in 1991)
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- growing # of 65+ year olds will be in workforce because a) elimination of mandatory retirement age of 65 b) recent global recession where people’s life savings diminished - 75% expected to work past 65 - factors included in the much more intergenerational contact in workplace: a) re entry of retired people into the workforce b_ trend to remove vertical layers in the organization - new programs in response to demographic shift: - flexible benefit plan - compressed work days - part time jobs - attract/ retain older workers - Orkin/PCO Services Corp. -->pest control service --> dealt with shortage of pest control specialists--> introduced more flexible part time schedule with benefits to attract employees back or to stay - diversity issues have increasing impact as organizations go global - foreign sales by MNCs exceed 7 trillion and growing 20/30% faster than sales of exports - multinational expansion, strategic alliances, joint ventures --> require employees and managers to come to contact with counterparts from other cultures - diversity and OB - stereotypes, conflict, cooperation and teamwork - managers must manage these effectively for orgs. to benefit from the considerable opportunities that diverse workforce offers A Positive Work Environment and Employee Well Being - deterioration of well being: concern over job security, job demands, work related stress - employees who are disengaged, disillusioned, suffering from physical and mental sickness - absenteeism +employee turnover on the rise in Cda - Statistics Canada: increase if found across all age groups and sectors, translates into millions of dollars in lost productivity - total cost reported absenteeism is 15 billion annually - major contributors: poorly designed jobs + increasing stress levels - work related illness on the rise - more workplace stress than a decade ago - Canadian employees study ;; direct cost of absenteeism is high work life conflict: 3-5 billion dollars annually - costs Canadians approx. 6-10 billion per year (when both direct and indirect costs included) - employees searching for meaning and purposes in their work lives have focused on employee physical and mental health by creating positive work environments - OB concerned with creating positive work environments that contribute to employee health/wellness - spiritual workplace and workplace spirituality: workplace that provides employees with
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meaning purpose a sense of community and a connection to others - is not about religion, but provides employees with meaningful work life aligned with their values - employees have interesting work which provides them meaning and feeling of purpose, a sense they belong to the org. and a sense of connection to their work +others - have opportunities for personal growth and development - feel valued/supported e.g. Telus: provides quiet rooms for meditation, praying, decompassing etc. - they offer seminars - nutrition, parenting, work life balance etc. - spirituality initiatives : create positive work environment, promotes health and wellness + reduced absenteeism - OB : concerned with developing employees and providing them with resources they need to achieve goals - psychological capital: an individual’s positive psychological state of development that is characterized by;; (components of PsyCap) - self efficacy (one's confidence to take on and put on the necessary effort to succeed at challenging tasks) , - optimism (making internal attributions about positive events in present and future +external attributions about negative events) , - hope (persevering towards one's goals and when necessary making changes and using multiple pathways to achieve ones goals), - resilience (ones ability to bounce back or rebound from adversity and setbacks to attain success) - these components are considered to be states or positive work related psychological resources --> they can be changed modified and developed - they are not fixed stable or static personality traits - research on Psycap: positively related to employee psychological well being and positive job attitudes, behaviours, performance - negatively related to undesirable things i.e stress anxiety, turnover intentions - Psycap interventions (PCI) focus on enhancing each of the components of psycap - one way for orgs. to improve employee health and well being is to develop their Psycap Talent Management and Employee Engagement - orgs. becoming increasingly concerned with talent and employee engagement - talent ranks second most critical challenge behind business growth - Talent Management an orgs. processes for attracting, developing, retaining, and utilizing people with the required skills to meet current and future business needs - ability of org. to attract/retain --> now especially critical --> firms struggling to compete and survive - orgs. struggling to find qualified individuals - changing demographics: dramatic shortage of skilled workers over next 10 year s - baby boomers will begin to retire in next few years = creating large skill gap - 30% shortfall of workers between ages 25-44 - increasing willingness of knowledge workers to relocate anywhere in the world and fewer Cdns
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entering skills trades= canadians will face increasingly severe shortages of labour - currently: shortages in scientific, technical,high tech industries and senior management communications marketing positions - more than 60 % of Cdn employers say that labour shortages are limiting productivity/efficiency - top CEOs of Cda --> believe retaining employees has become their #1 priority +attracting new employees is 4th priority, behind financial performance and profitability - 3/4 of employers say they cannot find competent employees - orgs. become increasingly concerned about employee engagement - work management: a positive work related state of mind that is characterized by vigour, dedication and absorption - only 1/3 of workers are engaged and engaged workers have more positive work attitudes + higher job performance - employee engagement= key for success and competitiveness , has significant impact on productivity, customer satisfaction, profitability, innovation and quality - sample of 65 firms (different industries), top 25% on engagement index had greater return on assets (ROA), greater profitability, more than double shareholder value (compared to bottom 25%) - OB and talent management + employee engagement - OB provides means for orgs to be designed/managed in way to optimize attraction development, retention engagement and performance of talent - i.e. providing opportunities for learning and designing challenging, meaningful, rewarding jobs - i.e. providing recognition and monetary rewards for performance - managing diverse workforce, offering flexible work arrangements, providing effective leadership Corporate Social Responsibility (CSR) - CSR- an org. taking responsibility for the impact of its decisions and actions on its stakeholders - orgs. overall impact on society at large and extends beyond interests of shareholders - more so interests of employees and community in which it operates - CSR - involves variety of issues - i.e. community involvement, environmental protection, safe products, ethical marketing, employee diversity, local/global labour practices - has to do with how an org. performs its core functions or producing goods and providing services and that is does so in a socially responsible way - Social responsibility and OB - has to do with treatment of employees, management practices ie. managing diversity, work family balance, employee equity - orgs. rank high on CSR: good employers because of the way they treat their employees and management practices promoting employee well being - CSr also involves - environmental, social and governance issues (ESG) - orgs. social and environmental actions are increasingly scrutinized L shareholders and consumers are holding firms to higher CSR standards on environment, employment, social issues - governance issues i.e. executive compensation receive greater attention
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- 2009 Macleans inaugural list of 50 Most Socially responsible Corporations --> those that raises standards of good corporate citizens - these rankings have led to increasing number of orgs. placing greater emphasis on CSR initiatives - Sodexo canada: made Sodexo Foundation: donates meals to at-risk youths - Cameo Corp: world’s largest producers of uranium, community investment program that focuses on improving the quality of life for people in communities it operates - Unilever Canada: community virility fund and donates 1% of pre tax profits to initiatives in childrens health and water resources (both linked to its products) - concern for environment and green initiatives - Sodexo Canada: one of canada's greenest corps. - green programs require change in employees attitudes and behaviours - i.e. Fairmont Hotels and Resorts : employees volunteer to be on green teams that meet month to brainstorm environmental initiatives - program= positive effect on employee engagement and motivation - employees are proud to be working for environmentally friendly org. - Hudson bays company: published CSr report every year - Husky Injection Molding System: environmental responsibility programs Applied Focus: Green Management at the Delta Chelsea Hotel - 2008: Turtle Island Recycling tour - helped get employees engaged in green initiatives by providing big picture of what happens to waste from hotel and impact on environment - 08: 76% of waste from hotel, recycled, and 09: figure risen to 81% - employee orientation includes a presentation on hotels green initiatives and policies - an internal newsletter dedicated a page to environment, posters o elevators, message boards etc. - also set goals to be carbon neutral --> LivClean EcoStay Program: guests can voluntarily pay $1 per stay to support emission-reduction projects The Manager’s Notebook: Toronto’s Troubled Transit System (pg. 25 read over section)
